The State Bank of India MF arm SBI Mutual Fund is planning to come up with a new scheme "Children’s gift fund" in August, for which the company has already filed the draft prospectus with Securities and Exchange Board of India (Sebi).

The , vice-president (sales), SBI Funds Management Ltd Sameer Bhargava said, "We are planning to launch Children’s gift fund, scheme sometime in August. We have already filed the draft prospectus with Sebi". He also said that the fund would allow parents to invest for the child’s education, and added that the scheme would be targeted mainly at the retail investors. He said that the upcoming fund was likely to have a lock-in period of about 18 years.

"The investment range would be kept at an level of between Rs 2000 and Rs 5,000 to make it attractive for investors," Bhargava said. He, however, declined to give further details on the proposed scheme. The SBI Mutual Fund was launched by State Bank of India, with the sole purpose of finding a dire need for an investment alternative.